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Luchen Technology becomes first to drop DeepSeek API over cost concerns
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TechNode
AI infrastructure company Luchen Technology has become the first firm to officially discontinue use of DeepSeek’s API, citing cost concerns.
The decision comes just days after DeepSeek reported a theoretical profit margin of 545% for its online system.
Luchen Technology announced March 1 that it would halt DeepSeek API services within a week and advised users to use their remaining balance.
Sina Tech’s Weibo post noted that while DeepSeek has open-sourced many inference components, third-party MaaS providers struggle to match its official costs.
Luchen’s founder, You Yang, has openly questioned DeepSeek’s cost structure, emphasizing the financial strain on smaller cloud providers.
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